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M&R’s top 5 investor rejects ATON’s buyout bid

The offer is below what we believe to be fair value, says Old Mutual.
Picture: Moneyweb

The fifth-largest shareholder in Murray & Roberts (M&R) plans to reject a hostile buyout bid from Germany’s ATON that values the South African builder at nearly $600 million.

“The offer of R15 per share is below what we believe is fair value. As a result we won’t be committing to sell into this price,” Brian Pyle, an analyst at Old Mutual’s equity investment arm, told Reuters.

Financial services conglomerate Old Mutual holds about 5% of M&R, whose board snubbed the offer from its biggest shareholder ATON, a company owned by German investor Lutz Helmig. ($1 = 11.6962 rand) 

Read: Independent M&R board rejects ATON advances

German shareholder moves to take over Murray & Roberts

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“The offer of R15 per share” is jsut a number…. Let us negotiate a number that ATON can pay, North of R15.

I remember when Carnegie sold his company to J P Morgan for $480 million and later asked J P Morgan would he have paid if he asked for $100 million more? and Morgan said “have a nice day mr Carnegie”….

South African’s, lets not stand in the way of progress…. Lets negotiate and bring in Foreign Direct Investment(FDI).

You need property rights for that, buddy.. At the moment it seems rather risky to commit billions (of Rand) if you are a foreign investor.

ATON is chancing it’s luck.

Why pay R15 if they are currently trading at R13? buy now and some cheaper later.

Is PPC perhaps not a good example of what not to do?
Did they also not want more and and what happened? the deal fell through …

End of comments.

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